Wells Fargo has agreed to credit 8,000 bankrupt home owners whose notices of changes in their monthly mortgage payments were delayed by a processing error. This resulted in home owners receiving less than 21 days’ notice of a change in their mortgage payment amount, in violation of US bankruptcy law. The bank has agreed to fix the error, and will pay $3.4 million to credit affected homeowners for the delay.
“This settlement illustrates the success of our enforcement efforts and may augur well for future consensual resolution of violations by creditors and financial institutions,” Cliff White, director of the Executive Office for U.S. Trustees, said in a statement.
The error was discovered by an independent reviewer who had been installed after an earlier incident, in which Wells Fargo paid a $81.6 million settlement in November after it failed to send more than 100,000 notices related to bankruptcy.